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S&P Hits Record High Despite VIX Flash Smash

Tyler Durden's picture




 

Was it ever in doubt? Bad news is great news for China and Europe and good new is great news for US because no matter what Yellen will go full dovetard tomorrow - at least that appears to be the total consensus view as the S&P hit record highs and bond yields plunge. Volume went from dismal to well dismal-er (we've run out of adjectives) to the lowest non-holiday of the year as we note Trannies (-0.25%) and Nasdaq lagged today. Credit markets snapped higher (tighter) today but remain less exuberant than stocks on the week. Gold staggered lower (-2% on the week) back under $1280 even as The USD rolled over notably on the day led by EUR strength. Treasuries rallied (30Y -3bps  and 10Y <2.40%) in the face of equity strength. VIX flash-smashed early on from 11.5 to over 13 (cracking stocks lower) but that was a great buying opportunity into J-Hole...

 

Yeah baby...

 

From the Putin military drill is over lows... Trannies and Nasdaq have outperformed...

 

Perhaps worryingly - the last few weeks best performers - Trannies and Nasdaq - underperformed today...

 

Year to Date - Healthcare (helpe by Biotechs) lead, Homebuilders still lag...

 

VIX dropped to 11.5 but not before flash-smashing over 13 early on...

 

Hhmm...

 

Treasuries rallied on the day led by the long-end, as 30Y is now 4bps lower than pre-hawkish FOMC minutes...

 

Gold has had a bad week, oil has recovered some losses today as Copper held yesterday gains despite shitty China PMI data..

 

Even as The USDollar rolled over on broad weakness led by EUR strength...almost giving back all of the FOMC Minutes gains

 

So - the last week or two has been remarkable in stocks... volume has collapsed, credit has diverged, VIX flash-smashed today, leaders were laggards today, the USD stopped surging today, Treasury yields rolled lower today, and oil started rising again... things changed today - marginal hedges being lifted into tomorrow or turning point?

 

Charts: Bloomberg

Bonus Chart: Don't believe the hyope in BofA...

 

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Thu, 08/21/2014 - 16:05 | 5126539 ebworthen
ebworthen's picture

"Peanuts!  Popcorn!  COTTON CANDY!"

Thu, 08/21/2014 - 16:29 | 5126649 Cattender
Cattender's picture

Best. Recovery. Ever. thank you OBunga... Party on!

Thu, 08/21/2014 - 17:36 | 5127033 max2205
max2205's picture

J Hole...stop it you are killing me...LOL

The sleds are a cool addition....better make them rockets Friday

Thu, 08/21/2014 - 16:30 | 5126653 negative rates
negative rates's picture

Step right up and shoot the star from the center of the board.

Thu, 08/21/2014 - 16:32 | 5126659 Aknownymouse
Aknownymouse's picture

Where did this kid come from in the uptrend cart? Also this is a different father. What's goin on!!??

Thu, 08/21/2014 - 16:05 | 5126543 NOTaREALmerican
NOTaREALmerican's picture

Lines,  lines,  ...   everywhere,  lines... 

Thu, 08/21/2014 - 16:07 | 5126545 NDXTrader
NDXTrader's picture

You couldn't keep the Nasdaq in that tight of a range even if you had a computer programmed to do it....wait a minute

Thu, 08/21/2014 - 16:07 | 5126546 i_call_you_my_base
i_call_you_my_base's picture

Going full dovetard at the j-hole. Well done.

Thu, 08/21/2014 - 16:19 | 5126592 Squid Viscous
Squid Viscous's picture

at least Lies man can get some fishing in, he's such the naturalist... and an expert at the art of casting a fly from what I hear

Thu, 08/21/2014 - 16:25 | 5126632 i_call_you_my_base
i_call_you_my_base's picture

Liesman will come back and talk about how great the fishing was, but when you ask him how many he caught, he'll say "none."

Thu, 08/21/2014 - 16:34 | 5126669 Squid Viscous
Squid Viscous's picture

maybe wet his pants next to Kosher-Lakota, so it ws a good outing for him...

Fri, 08/22/2014 - 08:46 | 5129194 Comte d'herblay
Comte d&#039;herblay's picture

Whoa.....you apparently have never gone "fishing".

While defending Liesman is not my intention, in this specific case, he would be right in talking about how great the fishing was and replying ""None" to how many he caught. 

There are greater minds than Comte's who know why.

 

Thu, 08/21/2014 - 16:11 | 5126551 HUGE_Gamma
HUGE_Gamma's picture

Tomorrows Headline.. SPY 200/QQQ 100

Thu, 08/21/2014 - 16:17 | 5126555 Squid Viscous
Squid Viscous's picture

why the fascination with SPX vs. 10 or 30 yr. clearly the correlation is broken and has been for years, so just stop... thanks

"the bond market wasn't buying it" (again, like 587 out of the last 700 trading days) as we charge thru 2000 SPX...lol

Thu, 08/21/2014 - 16:30 | 5126643 HUGE_Gamma
HUGE_Gamma's picture

it lasts sometimes on an intraday basis.. but pull the chart back months/years and it means nothing.

Thu, 08/21/2014 - 16:55 | 5126747 Comte d'herblay
Comte d&#039;herblay's picture

Tracking the 10 yr for couple years and hasn't much varied betwee 124. and 126 + or -.

No joy there.

Thu, 08/21/2014 - 16:36 | 5126575 NDXTrader
NDXTrader's picture

Methinks the last couple of weeks was the blow-off double top. Rally made no sense even in a no sense market. Too many divergences. I said a while back that we would top when the USDJPY strength started being looked at as a negative (since there is no carry trade with ZIRP). I think we're there

Thu, 08/21/2014 - 16:53 | 5126741 Comte d'herblay
Comte d&#039;herblay's picture

And Im just as certain that Howdy Doody was a puppet.

Thu, 08/21/2014 - 16:12 | 5126581 Son of Captain Nemo
Son of Captain Nemo's picture

I smell George Soros tears, and they ain't for "joy"...

Thu, 08/21/2014 - 16:15 | 5126590 Tenshin Headache
Tenshin Headache's picture

OT: 10% of Iceland is now no-go zone, due to the potential for an imminent volcanic, um, catastrophe:

http://www.dailykos.com/story/2014/08/20/1323371/-10-Of-Iceland-Is-Now-A...

Thu, 08/21/2014 - 16:18 | 5126607 Yen Cross
Yen Cross's picture

 Hahaha... George Soros sure got Mandingo-ed up his tailpipe this week...How's it feel to be out of the club for a week Georgie Porgie?

Thu, 08/21/2014 - 16:52 | 5126733 Comte d'herblay
Comte d&#039;herblay's picture

I woudn't count on that.  He's a charter member of the Jewish Mafia.  There is no way he EVER can lose money.  Don't take one little snippet of his trades, and make a decision to follow it.

While he's pointing to one thing with his index finger, he has four fingers hidden, in the palm of his hand. 

You can't follow his trade unless you're on his rolodex, or are a fly on the wall, watching, as he places his trades on Scottrade after a rubdown, and a roll in the hay with the LBFMs. 

Thu, 08/21/2014 - 17:18 | 5126824 Yen Cross
Yen Cross's picture

   I'm really not intrested in magic or tiddlywinks... I'm a facts person, and while Soros is a (2) headed snake, it's no secret he's got a massive put position on right now.

  Unlike you or me, George can sit on that trade forever if he wants. I'm sure you've heard the old trading proverb, "every trade's a winner if you hold it long enough?" Now go play in the street, like your mother taught you how to.

Thu, 08/21/2014 - 17:25 | 5126955 disabledvet
disabledvet's picture

Who was that Japanese dude sitting on a million tons of copper no one knew about and was "long only"?  Think it was back in the 90's.

Wanna say his "un-sellable position" sent copper below a buck a pound.

According to the geologist folks there's a billion tons of it in Argentina.

The "Bronze Age" was a long time ago...

Fri, 08/22/2014 - 08:52 | 5129214 Comte d'herblay
Comte d&#039;herblay's picture

You don't know but a scintilla of what his strategy is.

The variables on that theme, that apparently you are completely ignorant about, are testament to the fact that you KNOW NOTHING!!'

Grow the fuck up and admit you were wrong to post an assinine viewpoint that takes into account only your feelings about where the market is headed. 

Puts have expirations. You'd know that and put the lie to Every Trade's a winner if you ever bought a single one. 

Take a revolver, put a single paintball in it, and aim it at your temple. 

 

Thu, 08/21/2014 - 16:57 | 5126763 Son of Captain Nemo
Son of Captain Nemo's picture

How's it feel to be out of the club for a week Georgie Porgie?...

He's distancing himself from the worst mistake his money contributed to and the "dumb Polack" who fancies himself a chess player that is also CFR that talked him into it.

Like rats fleeing the sinking ship....

Hats off to GW for covering this so well.  This is a very significant watershed moment and announcement from members within the gang who contributed but now want out after the "blowback" and all the money they have lost and blood on their hands in the aftermath.

We're essentially witnessing the damning separation among all the unhappy players who made there bed on this one and are worried about their future in both money and in contributing to war crimes.

In a word S-W-E-E-T!

The only thing that would make tihs announcement from the CFR more enjoyable is Germany exiting the EU and the Hague moving to Saint Petersburg

Thu, 08/21/2014 - 17:01 | 5126798 Yen Cross
Yen Cross's picture

  I've no doubt Soros knows what he's doing. He's been at the game long enough to see the writing on the wall.

Thu, 08/21/2014 - 17:27 | 5126969 disabledvet
disabledvet's picture

Yeah, okay. And the world's "global media HQ" is in Tehran.

Thu, 08/21/2014 - 16:24 | 5126630 GOLD AND SILVER...
GOLD AND SILVER NATZI's picture

Five years of reading ZH fear porn, and all I got was this lousy all time S&P high.

Thu, 08/21/2014 - 16:29 | 5126652 HUGE_Gamma
HUGE_Gamma's picture

new t-shirt .. on sale this week!

Thu, 08/21/2014 - 16:52 | 5126724 NaiLib
NaiLib's picture

:) aha, you're about to capitulate?

Thu, 08/21/2014 - 17:29 | 5126983 GOLD AND SILVER...
GOLD AND SILVER NATZI's picture

Ugh, save me.  :(

Thu, 08/21/2014 - 16:31 | 5126651 Keltner Channel Surf
Keltner Channel Surf's picture

The media’s account of today is rather amusing – money manager Yellen worship (“we must make an offering to the god of stock prices”).  

Instead, annoyingly, it seemed pure machine, purely technical.  Each day is the combination of all algos and participant actions.  With anticipated low volume (late August, and no reason to sell before Yellen), the machines were rather textbook:  create a downdraft “buying vacuum” after ‘strong’ 10:00 econ reports, lie in wait at a key moving average just as the big POMO spigot started at 10:15 (for the Russell it was the 200 DMA), then turn on the “slow burn” algo to grind higher, reloading each time the 20-MA was hit on the 2-min chart, all the way up to where supply would be (again for the Russell, the 50 DMA).  

They knew none of the big houses would have a sell program on until at least 20 min. into Yellen’s speech tomorrow, so nothing would stop them from levitating on pathetic volume.  If it was a bunch of Fidelity fund managers deciding what to do over breakfast, we wouldn’t have been bracketed by major moving averages so precisely.

Thu, 08/21/2014 - 16:31 | 5126662 negative rates
negative rates's picture

You ever think about gettin a real job?

Thu, 08/21/2014 - 16:53 | 5126736 Keltner Channel Surf
Keltner Channel Surf's picture

You’re right, with the 99% failure rate, flashing green bars, and the fact that every action directly affects your income, trading is pure fantasy.  

Had a “real job”, financial analysis mgr for a F100 company.  Sat in conference rooms, listening to vendors drone and programmers squabble while the project managers, allegedly taking notes, played Angry Birds on their iPhones.  The ‘reality’ was epic.

Thu, 08/21/2014 - 17:58 | 5127151 negative rates
negative rates's picture

Well you didn't need that pension for doin or makin nothin so we'll call it even.

Thu, 08/21/2014 - 18:17 | 5127246 SMC
SMC's picture

Wonder what the odds are for a record high and a multi-decade low in a single calendar year? ROFL.

Grab the popcorn. This is getting hilarious.

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